Multimillion-dollar U.S. Company Microsoft to close operation in Nairobi

Microsoft has announced plans to close parts of its Africa Development Centre (ADC) in Nairobi after more than seven years in operation.

The proposed shutdown targets the engineering department at the Nairobi Centre, raising concerns about between 400 and 500 employees who could face possible unemployment. 

On Tuesday, employees were informed of the planned changes on Monday, October 12.

“We are communicating directly with employees in Kenya about proposed changes to our engineering operations. We recognise the uncertainty this brings and are keeping those discussions private,” stated a Microsoft official.

This latest development comes as Microsoft undertakes a major global restructuring affecting employees in several African tech circles as the company reviews its workforce operations. 

That notwithstanding, the company said it would continue operating in Kenya, retaining employees in the country and supporting customers across the region despite the proposed engineering changes.

“Microsoft remains committed to Kenya and will continue to have employees in the country while supporting the country’s ongoing digital transformation and innovation ambitions,” added the official.

The announcement came on the same day Information, Communications and the Digital Economy Cabinet Secretary William Kabogo met a Microsoft delegation led by Jeff Bullwinkel, the company’s regional legal affairs executive, whose main discussions focused on the company’s continued presence and contribution to Kenya’s technology sector.

He said the government had emphasised the importance of retaining local talent, protecting jobs and sustaining investor confidence in the country’s technology industry.

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“Microsoft briefed me on its evolving operations in Kenya in the context of its global restructuring. I stressed the importance of retaining local talent, protecting jobs at Microsoft’s Nairobi engineering centre and sustaining investor confidence in Kenya’s technology sector,” Kabogo stated.

The development comes as Microsoft reported strong global financial margins, with a net profit margin of 40.31 per cent, a gross profit margin of 67.94 per cent, and an operating margin of 46.78 per cent this year.

However, Microsoft previously closed its Lagos Africa Development Centre in 2024 and ended direct corporate operations in Pakistan in 2025, while its global restructuring has also involved changes to engineering teams in Israel.

It also comes at a time when the proposed Ksh129 billion (USD1 Billion) data center project in Kenya, developed in partnership with a UAE-based AI firm, stalled due to major disagreements over power supply and financial guarantees.

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